TORONTO - Scotiabank says it expects the cyclical recovery in global auto sales that began in mid-2009 to remain intact in the coming year.

A report by the bank (TSX:BNS) says it expects worldwide auto sales to advance four per cent in 2013 after having seen average growth rates of seven per cent over the past three years.

Car sales in Canada are expected to edge up to 1.69 million units in 2013, the second-highest level on record and up from 1.68 million this year.

Scotiabank says job gains, especially in Western Canada, will support the market. However, it says slowing housing activity will dampen consumer confidence and household wealth, limiting the improvement.

Meanwhile, the bank says it also expects improvement in the U.S. market where consumers have reduced debt loads.

It says Americans are in "good shape" to begin replacing old clunkers in a country where the average age of cars on the road now exceeds 11 years for the first time.